Through the first nine months of 2016, net U.S. trade fell $470 billion, according to the Census Department. Although GDP growth might not be as robust as many would like it to be, few economists would argue it is in negative territory. The last time U.S. trade declined while its economy grew? World War II. Companies can exert very little control over the macro conditions that either drive or impede trade. One sensible response to a low-growth environment is for companies to tak...

Global airfreight volumes in October 2016 rose 8.2 percent compared with the same 2015 period, the largest increase in 18 months, according to the most recent data from the International Air Transport Association (IATA). Available airfreight capacity rose 3.6 percent year-over-year for the month, while load factors remained historically low, keeping yields under pressure. The sharp growth in airfreight volumes during the month from a year prior coincided with a turn...

Ocean carrier CMA CGM of France said it is no longer using the U.S. Lines brand on the Oceania or transpacific trades. Since Oct. 17, U.S. Lines' services have been rebranded as ANL on the Oceania trades and APL on the transpacific trades, CMA CGM said. ANL said it is providing the same sales coverage, vessel network, executive involvement, trade, pricing team and service to U.S. Lines' customers. In August, CMA CGM said it would consolidate t...

The size of the idle containership fleet has doubled in the past year, from 238 ships with 900,000 TEUs of capacity in November 2015 to 435 ships with 1.7 million TEUs of capacity in November 2016, London-based shipping research and consulting firm Drewry said in its latest Container Insight Weekly newsletter. At one time in early 2015, the amount of idle capacity fell below 200,000 TEUs. The young age of ships being laid up “is a strong indica...

DP World is partnering with Canada’s second largest pension fund to create a $5 billion Canadian (U.S. $3.7 billion) investment platform, the companies said in a joint statement. The Dubai-based operator will own a 55 percent stake in a new vehicle targeting port and terminal investment opportunities outside of the United Arab Emirates, while Caisse de dépôt et placement du Québec (CDPQ) will hold the other 45 percent. The investment vehicle will be seeded with two ...

The Boston Consulting Group (BCG) said that oversupply of containership capacity could worsen in coming years. In a report titled Sailing in Strong Winds , BCG said the container supply-and-demand balance stood at 7 percent at the end of 2015, and that its proprietary model indicates that gap could grow to between 8.2 percent and 13.8 percent in 2020, with oversupply of vessel capacity reaching between 2 million to 3.3 million TEUs. Global growth...

Ocean carriers Maersk Line, MSC, CMA CGM and Hapag-Lloyd announced new freight rates. Maersk Line announced an increase in FAK rates from: • The United States and Canada to Far East Asia , which took effect Nov. 30 and will run until further notice, but not beyond Jan. 1. • Far East Asia to the U.S. and Canada effective Dec. 15 until further notice, but not beyond Dec. 31. • Asia to the W...

In mid-October, a buzzword that has been circling the financial world for years finally came into clear view in the world of supply chain. That’s when news came that Maersk Line, the world’s largest container shipping operator, was pilot testing a blockchain-backed bill of lading. The news was significant for those who rely upon the movement of freight across borders, as it hints at a future when companies might be able to eliminate the stacks of paper documents th...

Source: Etihad Cargo Etihad Cargo recorded its busiest month ever in October, uplifting 53,785 metric tons of cargo during the month. The airline attributed the new record to growth in perishables traffic from Africa, U.S. inbound and outbound traffic, and volumes from Europe to the Asia Pacific. The previous record was set in November 2014 and was 501 metric tons less than the volumes the airline handled this October. Etihad Cargo was established in 2...

CargoSmart, a provider of ship management software, reviewed the performance at six ports before and after the new verified gross mass (VGM) amendment of the Safety of Life at Sea (SOLAS) convention took effect July 1. The six ports analyzed from March-May 2016 and from July-September 2016 included the ports of Jawaharlal Nehru (Nhava Sheva) and Tanjung Pelepas in Asia, Rotterdam and Felixstowe in Europe, and Los Angeles and Savannah in North America. CargoSmart rev...

The World Trade Organization (WTO) said the countries of Dominica and Mongolia have become the latest members to ratify the global trade body’s Trade Facilitation Agreement (TFA). The latest ratifications bring total TFA membership to 100 out of 160 member nations, leaving just 10 more needed to bring the agreement into force. Concluded at the WTO’s 2013 Bali Ministerial Conference, the TFA contains provisions for expediting the movement, release and clearance of go...

The European Commission has granted conditional approval of the merger between Germany’s Hapag-Lloyd and Dubai-based United Arab Shipping Co. (UASC), the European Union competition watchdog said in a statement. Approval from the EC, which examined the potential tie-up under the EU Merger Regulation, is conditional on the withdrawal of UASC from slot-sharing agreements on the transatlantic trades between North Europe and North America. The combined carrier “would have faced insuf...

Just because you can purchase a product off a store shelf and take it home in your car doesn’t mean it’s safe to ship in a cardboard box by air transport, but that’s just what’s happening all too frequently in today’s online shopping world, air cargo experts warn. The trend toward anything and everything in small quantities finding its way onto an aircraft is understandable with so many online retailers offering next-day and two-day shipping. The problem is that many of these s...

Dr. Olumuyiwa Benard Aliu was re-elected to his second three-year term as president of the council of the International Civil Aviation Organization (ICAO) . Dr. Aliu assumed the office of ICAO council president on Jan. 1, 2014, having previously served as the representative of Nigeria since Jan. 1, 2005. The International Air Transport Association (IATA) has appointed Muhammad Ali Albakri as regional vice president for Africa and the Middle East (AME), effective Jan. 1, 2017. He...

Ocean carriers Maersk Line, MSC, CMA CGM, Hapag-Lloyd and OOCL announced new freight rates across various trades. Maersk Line has announced an increase in FAK rates from: • Asia to the West Coast of Central and South America, Mexico, Panama and the Caribbean effective Dec. 1 until further notice, but not beyond Dec. 11. • Asia to the Mediterranean effective Dec. 1 until further notice, but not beyond Dec. 14. &n...

Etihad Cargo has started operating Boeing 777 freighters from the East Midlands Airport and the London Stansted Airport in the United Kingdom, and Denmark’s Copenhagen Airport. The new routes were added last month, the airline said. “Manufacturers in the UK and Denmark can now get their merchandise to their customers in the Middle East even faster, in as little as 24 hours in some cases,” Etihad Cargo Senior Vice President David Kerr said. With these ne...

A leading shipper organization is raising the alarm about the headlong rush by container carriers into the use of mega-ships, strategic alliances and mergers. “This is harmful to shippers because mega-ships and strategic alliances reduce supply chain efficiency and rivalry on important parameters of competition, including capacity, sailing frequency, transit times, ports of call and associated service quality,” according to a report issued this week by the Global Shippers' ...

The World Trade Organization (WTO) said the number of trade restrictions imposed by the Group of 20 countries has continued to grow, despite ongoing global economic uncertainty and negative trade forecasts. The WTO noted in its 16th monitoring report of the G20 that 85 new trade restrictions were implemented by these countries during the review period, running from mid-May to October 2016. “It is clear that the financial crisis has had a long tail and that the ...

Ocean carriers Maersk Line, CMA CGM and Hapag-Lloyd issued freight rate increases. Maersk Line announced increased FAK rates from: • The Middle East to the East Coast of South America effective Dec. 1 until further notice, but not beyond Dec. 31. • The Mediterranean to Far East Asia Dec. 1 until further notice, but not beyond Dec. 31. • North and West India to East Africa effective Dec. 1 ...

Stratfor said the shipping industry is facing a “new wave of maritime threats” that includes not only piracy but “ideologically motivated militant attacks.” The Austin, Texas-based publisher and intelligence company said in an analysis posted on its website , “Piracy will continue to decline worldwide. However, maritime threats will still pose a considerable challenge to global shipping companies, especially in waterways in unstable regions. “If the maritime se...

Agility Logistics grew net profits 11 percent to 15.2 million Kuwaiti dinars (U.S. $50 million) in the third quarter of 2016, following a similar 11 percent gain in Q2 2016, according to the company's most recent financial statements. The Kuwait-based integrated logistics provider reported third quarter earnings per share (EPS) of KD 13.19 for the quarter, compared with KD 11.91 per share in the same 2015 period, despite revenues slipping 7 percent year-over-year to KD 312 milli...

Michael Berg has been appointed chief executive officer of Envirotainer , a provider of cold chain cargo-handing equipment for air transport. For the past year and a half, Berg has served as consultant to the firm. Prior to this, he was CEO for various international companies, including ArjoHuntleigh, a medical technology firm. Aerospace logistics and warehousing provider B&H Worldwide has named Mark Nightingale regional managing director for Europe, the Middle East and Afr...

Members of 'THE Alliance' - Ocean carriers Hapag-Lloyd, Yang Ming, NYK, MOL and “K” Line - have provided details of their planned vessel sharing agreement. The carriers said they will offer “31 services covering all East West trade lanes with short transit times,” including 16 loops in the transpacific trade. Utilizing 240 ships, the services will call over 75 ports in the Far East, North Europe, the Mediterranean, the U.S., Canada, Mexico, Central America, the...

The U.S. trade deficit totaled $36.4 billion in September, marking the lowest level since February 2015, according to data from the U.S. Commerce Department. The nation’s trade deficit in September, which fell 9.9 percent from a month prior, was even lower than analyst expectations, as exports were on the rise. Analysts polled by the Wall Street Journal projected the U.S. trade deficit would total $37 billion in September, while analysts survey by Reuters anticipate...

The rampant overcapacity that has caused container freight rates to plummet to historic lows in the past year is only going to get worse in the short term, according to a report from the Boston Consulting Group (BCG). BCG Perspectives said in the report, titled The New Normal in Global Trade and Container Shipping: Sailing in Strong Winds , recent developments confirm the container shipping industry still faces “daunting challenges.” BCG noted that until 2015, ...

Ocean carriers Maersk Line, CMA CGM, Hapag-Lloyd, MOL and NileDutch have announced freight rate increases. Maersk Line of Denmark issued increased FAK rates from: • The Far East to North Europe Nov. 15 until further notice, but not beyond Nov. 30; • Asia to the Mediterranean effective Nov. 15 until further notice, but not beyond Nov. 30; • Asia to the West Coast of Central and South Ameri...

The International Air Transport Association (IATA) reported Thursday global airfreight volumes in September rose 6.1 percent from a year prior, the largest increase since February 2015 when the disruption at U.S. West Coast seaports lead to a shift in freight shipments from ocean to air. Meanwhile, available airfreight capacity in September rose 4.7 percent year-over-year, while load factors remained historically low, keeping yields under pressure. The sharp growth ...

Left to Right: Andy Tung, CEO of OOCL; Wang Hai Min, managing director of China Cosco Shipping Lines; Rodolphe Saadé, vice chairman of CMA CGM; and Lawrence Lee, president of Evergreen Source: CMA CGM The OCEAN Alliance, which includes the container carriers COSCO Container Lines, CMA CGM, Evergreen Line and Orient Overseas Container Line (OOCL), has released details on their proposed network, including the port rotation for 41 service loops. Beginning next April, they plan to ...

PIL Logistics Egypt Limited opened a 20,000-square-meter contract logistics center at the Al Tajamouat Industrial Park on Sunday, PIL said. The new facility, which is the company’s first distribution center in Egypt, offers a variety of services, including warehousing, distribution, inventory management, value added service, and order fulfilment. Features of the new facility include temperature-controlled and ambient temperature storage capable of reaching temperatu...

Merger and acquisition activity in the transportation and logistics industry remained “strong” in the third quarter of 2016 despite declining from the previous quarter and third quarter 2015, according to a quarterly analysis of global deal activity in the sector by multinational professional services and consulting firm PricewaterhouseCoopers (PwC). Sequentially, total deal value for mergers and acquisitions in the sector plunged 30 percent to $26 billion compared with second q...

Ocean carriers Maersk Line, CMA CGM and Hapag-Lloyd issued general rate increases on various trades. Maersk Line announced new FAK rates from Asia (excluding Japan) to Australia effective Nov. 15 until further notice, but not beyond Nov. 30. Maersk also issued increased FAK rates from Asia to New Zealand effective Nov. 15 until further notice, but not beyond Nov. 30. CMA CGM issued general rate restorations from: • All Asia...

IAG Cargo had revenues of 240 million euros (U.S. $262.2 million) for the third quarter of 2016, down 7 percent from the third quarter of 2015, the company said Friday. However, IAG Cargo’s volumes rose 4.5 percent on a like-for-like basis, while yields decreased 10.5 percent at constant exchange. “Our commitment to develop premium products and customer experience was further reinforced last month, when we announced a 55 million euro investment in a new premium faci...

The U.S. Justice Department said Iranian national Mansour Moghtaderi Zadeh pleaded guilty Thursday to taking part in a conspiracy involving the purchase and shipment of aviation parts and supplies from the United States to Iran without an export license. Specifically, Zadeh pleaded guilty to one count of conspiracy to illegally export goods, technology and services to Iran without the required license and to defraud the United States. The charge carries a maximum of five years i...

Ocean freight rates have been on a gradual rise since April, stripping out the short-term impact of Hanjin Shipping’s insolvency in late August, according to the containerized ocean freight rate benchmarking platform Xeneta. Xeneta, which crowd sources shipping data from more than 600 major international businesses, covering more than 60,000 port-to-port pairings and over 17 million contracted rates, said Hanjin’s collapse temporarily transformed an oversupplied market to unders...

The International Maritime Organization's (IMO) Marine Environmental Protection Committee (MEPC) will lower the global cap on the amount of sulfur in marine fuel from 3.5 percent to 0.5 percent in 2020. The London-based IMO, an arm of the United Nations, made the announcement in a brief tweet earlier today. The IMO could have deferred the cap until 2025, but chose not to. Shipping costs could rise dramatically as a result. World Shipping Co...

The Suez Canal Authority (SCA) is asking major ocean carriers to pay canal fees three to five years in advance, SCA Chairman Mohab Mamish confirmed to the Wall Street Journal in a recent interview. According to Mamish, the plan is to have regular users create an account with SCA into which they will deposit funds from which the canal will deduct transit fees when vessels use the important waterway connecting Asia and the Middle East with the Mediterranean and North Europe. In re...

The Commerce Department on Monday announced its final antidumping duties for imports of circular welded steel pipe from Oman, Pakistan, the United Arab Emirates and Vietnam. In addition, the department has concluded its countervailing duty investigation for the same imports from Pakistan. Dumping occurs when a foreign company sells a product in the United States at less than fair market value, while a countervailable subsidy is financial assistance to a company from...

Container terminal operator DP World handled 47.5 million TEUs at its container terminals in the first half of 2016, a 2.2 percent increase from the same 2015 period on a reported basis and a 1 percent increase on a like-for-like basis (not including divestments and new capacity). Like-for-like gross container volumes exclude throughput at DP World’s facilities in Yarimca, Turkey; Stuttgart, Germany; Antwerp Inland, Belgium; and Prince Rupert, Canada. The company sa...

Ocean carriers Maersk Line, CMA CGM, Hapag-Lloyd, OOCL and MOL have announced freight rate increases. Maersk Line announced an increase in FAK rates from Asia to the West Coast of Central and South America, Mexico, Panama and the Caribbean effective Nov. 1 until further notice, but not beyond Nov. 14. The Danish carrier also issued increased FAK rates from Asia to the East Coast of South America effective Nov. 1 until further notice, but not beyond Nov. 14. &n...

After hitting an all-time low in February, dry bulk shipping rates have more than tripled. The Baltic Dry Index—which reflects estimates for the cost of moving a variety of different dry bulk commodities in different size ships on a variety of routes—has climbed from a record low of 290 to more than 900 in early October. But does this augur good times ahead for the industry? Probably not for some time, according to an analysis by the Baltic and International Maritim...

During its most recent assembly, the 191 member states of the International Civil Aviation Organization passed an agreement on a global market-based measure to offset carbon emissions worldwide, putting a bow on a quest for airline emissions trading that has been years—if not decades—in the making. ICAO said the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is “designed to complement the basket of mitigation measures the air transport community is al...

The recent events surrounding the bankruptcy of Hanjin Shipping have resonated with serious negative overtones impacting global supply chains in almost every industry. Vessels and cargoes are being seized, crew members are facing arrest and prosecution, senior executives are being pursued by government authorities, and freight is being held up from meeting delivery and destination requirements. In my consulting practice, we faced numerous concerns raise by purchasin...

Maersk Line said it has resumed service to Iran after a five-year absence and just a year and a half after a ship in one of its container services was fired upon by the Iran Revolutionary Guard Corps (IRGC) Navy. “This means that our customers can once again utilize our global network, large fleet of vessels and equipment, weekly departures, superior transit times and innovative suite of e-business solutions, both to and from Iran, subject to country specific regulations,” ...

The head of the World Trade Organization (WTO) warned that the benefits of international trade are increasingly getting lost among the incessant anti-trade rhetoric that’s being espoused worldwide. “The risk of the negative rhetoric is that it will evolve into damaging policies down the road,” said Roberto Azevêdo, WTO director-general, in a speech Thursday before the Confederation of Norwegian Enterprise. Attacks on free trade agreements, such as the wide-ranging T...

Marten Transport, Ltd. reported a net income of $8.44 million for the third quarter of 2016, a slight increase from a net income of $8.41 million for the third quarter of 2015. The temperature-sensitive truckload carrier’s operating revenues for the quarter totaled $170.46 million, down from $171.35 million from the third quarter last year. For the first nine months of 2016, Marten’s net income reached $25.16 million, down from $26.96 million for the first nine mont...

In advance of next week’s 70th session of the Marine Environment Protection Committee (MEPC 70) of the International Maritime Organization (IMO) in London, five major shipping industry trade organizations said the shipping industry should make a "fair share contribution" toward reducing carbon dioxide emissions. The trade organizations added that, "Maritime transport needs to be acknowledged as part of the solution to reducing global CO 2 , and any fair share contributed by...

RELATED COVERAGE Commentary: Procurement shouldn’t be like doing taxes Ocean freight rates on major trade lanes have declined to historical lows and are struggling to rebound from persistent overcapacity. After years of low revenue, carriers are now struggling, causing cost-cutting measures that have reduced their reliability. In that environment, savvy shippers (manufacturers and retailers) may not be able to operate as they have in the past, with long lead times and annual request-for-pro...

RELATED COVERAGE AlixPartners: Ocean freight shippers need to think short term Let’s start with a theory. Assume for a second that the actual act of transportation procurement isn’t insanely time-consuming and rigorous (not to mention mind-numbing). Let’s assume that in this alternate universe, it would be just as easy to run a procurement bid every month or week as it would be to do so once a year. Given those circumstances, would you be more likely to procure mor...

Growth in the container terminal industry is slowing, a change investors in the industry are recognizing, said Neil Davidson, senior analyst in Drewry's ports and terminals practice. Drewry is forecasting annual growth of 3 percent in the container terminal industry, much more modest growth than in prior years. Margins will be lower, but Davidson believes the business will still be profitable. “The container port industry has been an extraordinary industry since its...

Ocean carriers Maersk Line, CMA CGM and Hapag-Lloyd issued freight rate increases on various trades. Maersk Line announced FAK rate increases on various trades from: • Far East Asia to North Europe ; • North Europe to Far East Asia ; • Asia to the Mediterranean ; • The Mediterranean to Far East Asia ; • Far East Asia to the We...

Containership values are plunging and other liner companies could write down the value of their container shipping businesses as Japan’s largest carrier, Nippon Yusen Kaisha (NYK), did earlier this week . NYK said it is projecting a 100 billion yen (U.S. $957 million) impairment on its container business, as well as an impairment of 85 billion yen for bulk carriers, and 10 billion yen for cargo aircraft. The containership write down "exceeds previous impairment...

The Port of Damietta Authority has signed an agreement with China Harbor Engineering Company Ltd. for the construction and development of a second container terminal, the port authority said in a statement. Under the memorandum of understanding signed earlier this week, China Harbor will build a terminal with berths totaling 2,225 meters long, a 17-meter harbor depth, and 700,000 square meters of container storage space at the Egyptian port. The Chinese government w...

Air services provider dnata launched a new customer service center in Dubai for export cargo customers, the company said Monday. The new center is situated in the Dubai Airport Free Zone - Freight Gate 5 and spans over 5,000 square meters. dnata anticipates the new center will serve about 700 customers per day and handle 25,000 tons of export cargo per month. Within the new customer service center is the Cargo Integrated Control Center (CICC), designed to enhance cu...

The International Civil Aviation Organization’s (ICAO) members have agreed to measures aimed at enabling the aviation industry to reach carbon neutral growth from 2020. The agreement follows last month’s decision by the G7 transportation ministers to issue a statement in support of the adoption of the global market-based measure for addressing CO2 emissions. On Thursday, 190 country members of ICAO, including the United States, formalized the Carbon Offsetting and R...

Ocean carriers Maersk Line, MSC, CMA CGM, Hapag-Lloyd and OOCL adjusted freight rates on various trades. Maersk Line announced increased FAK rates from: • Asia to the Mediterranean ; • Far East Asia to the United States and Canada ; • Far East Asia to West Africa ; • The Far East to North Europe ; • Far East Asia to the West C...

The Liberian International Ship and Corporate Registry has appointed Gerard Kenny technical manager of its London office, where he will primarily serve as a technical advisor to the Liberian delegations to the International Maritime Organization. Kenny was most recently chief marine surveyor with the Virgin Islands Shipping Registry. In addition, the registry named Rafael Cigarruista manager of its regional office in Panama; Pinar Saglam corporate and registrations coordinator i...

A decision that could boost the annual cost of moving ocean cargo to $60 billion could take place later this month when the Marine Environmental Protection Committee (MEPC) of the United Nations’ International Maritime Organization (IMO) discusses when to lower the global cap on sulfur levels in bunker fuel. The 70th session of MEPC is expected to feature extensive talks on whether the refining industry can produce enough low-sulfur fuel to allow the limit to be lowered from 3.5...

It's not only container operators that are having trouble this year. "The last three months have been some of the worst the multipurpose and project carrier sector has endured in living memory. The breakbulk and project cargo sector remain weak, with little suggestion that volumes will improve significantly until the end of 2017," according to the latest Multipurpose Shipping Market Review and Forecaster report published by the London-based shipping consultant Drewry. &nbs...